I am fascinated by the massive growth in mobile phone penetration globally. This must be one of the biggest social changes that humans were ever submitted to. I am sure that this social phenomena, will eventually impact the way that we trade and pay as well. This is what I am writing about. See disclaimer at the bottom of blog.

Thursday, July 07, 2011

Signature-based security is the biggest source of Fraud attempts

At the risk of stating the obvious: The chances of fraud is significantly higher with payment instruments based on signatures than those using PIN's. This is made clear in a blog posted on the 27th June on Retail Payment Risk Forum. Based on information collected during 2010, fraud is more likely by a factor for instruments that use signatures as payment authorisation.

The relevance of this research in my mind is that the cost component allocated to security could be reduced by as much as 80% by making use of a more secure mechanism. By taking these concepts into consideration in the deployment of mobile payments, it is possible to offer much less expensive solutions. It is important to consider security designs from this perspective.

1 comment:

Fraud attempts are hitech these days. Never reply to an email from an unknown person that asks for your help to transfer a huge amount from a foreign bank account. These are scams. Many people are already cheated by such email scam.

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